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Elita Chikwati & Ellen Chasokela
At least 46 million kilogrammes of flue-cured tobacco worth US$82 million has been sold so far since the opening of the 2018/2019 marketing.

Latest statistics from the Tobacco Industry and Marketing Board (TIMB) indicate that 37 million kilogrammes worth US$67 million was sold through the contract floors while the auction floors acounted for US$15 million from 9 million kilogrammes of the golden leaf.

Tobacco deliveries are low this season compared to the same period last year, when 72 million kilogrammes worth $206 million were sold.

Total auction sales since the 2019 marketing season opened are 9 023 656 kilogrammes worth US$15 270 483 compared to 11 599 243 kilogrammes worth US$32 782 557 sold during the corresponding period last year.

Contract sales have declined by 39 percent as 37 191 213 kilogrammes worth US$67 033 364 were sold this marketing season compared to 60 928 559 kilogrammes worth US$173,621,960 sold during the same period last year.

The highest price at the action floors is US$4,65 per kilogramme while contractors have offered the highest price of US$5,60 per kilogramme while the lowest price has remained at US$0,20 per kilogrammes.

The first bale was bought for US$4,50 per kilogramme, which is 40 cents less than the price of the first bale last season.

Deliveries to the floors were low during the first days of the season as some farmers adopted a wait-and-see attitude, while others withdrew their bales in protest at the low prices on offer.

Tobacco sales have continued to increase following the removal of the two percent tax from all transactions involving the crop, although they are still below the volumes sold during the same period last year.

The 2019 tobacco crop was grown under unfavourable  weather conditions characterised by late rains and prolonged dry spells especially when the crop was almost ready for reaping.

A record 252 million kilogrammes was last year delivered to the auction floors compared to previous record of 231 million kilogrammes in 2000.

This season stakeholders in the tobacco industry are expecting between 240 million and 260 million kilogrammes.

Meanwhile, preparations for the 2020 tobacco growing season have started with most farmers mobilising inputs with some farmers contemplating reducing hectarage next season.

The earliest date of sowing seedbeds is June 1.

Most tobacco growers said they were buying inputs from the tobacco sales proceeds in preparation for the next season.

The farmers, however, complained that prices of inputs had soared with some saying they may be forced to reduce the area planted to tobacco.

According to TIMB statistics tobacco sales have declined by 85 percent when compared to the same period last year.

The statistics show that tobacco farmers have bought 9 890 grammes of tobacco seed equivalent to 1 645 hectares compared to 67 035 grammes of tobacco seed enough to cover 111 172 hectares bought around this time last year.

Zimbabwe National Farmers’ Union chief executive Mr Edward Dune said the low prices would have a negative effect on production of the crop next season.

“Indeed, there are negative effects. Low prices will result in reduced productivity the following season,” he said.

Mr Dune said farmers will be guided by market trends on whether to increase or reduce production.

“It is also important to study the international trends as regards weather patterns in competing tobacco-producing countries like Brazil, America and China. Zimbabwean tobacco remains critical in blending the leaf volumes from those international products.

“Contractors who continue to short change farmers by paying low prices will end up shooting themselves in the foot as they will end up with no farmers to contract. Only highly paying contractors whose clients are happy with their services will remain in business,’’ he said.

Zimbabwe Commercial Farmers Union president Mr Shadreck Makombe said tobacco farmers were  unhappy and if they had an option they would move to other crops.

“Only those who were contracted with good companies are getting better prices while the rest feel that they are short-changed. Other farmers are already looking for alternative crops to grow,’’ he said.

Tobacco Research Board general manager Dr Dahlia Garwe during a show on Capitalk FM confirmed that tobacco seed sales were low but said it was too early to make a an accurate forecast.